A No-Claim Discount (NCD) entitles you to a lower car insurance premium. The maximum NCD you can have is 50% and the lowest is 0%. Thus the discount you get depends on how high your NCD is. This is one of the ways you are rewarded for being a safe driver.

If you have not made any insurance claim in the past 1 year, your NCD will increase by 10%. The 2 tables below illustrate this:

For Private Cars:

For Commercial Vehicles and Motorcycles:

With the above in mind, it does not necessarily mean you will lose your NCD if you make an insurance claim.

In Singapore, insurers depend on a benchmark known as the Barometer of Liability Agreement (BOLA) to determine what your responsibility is for each accident you get into. As long as it is less than 20%, your NCD will not be affected.

Otherwise your NCD may drop by 30%, as illustrated in the table below:

There is a common misunderstanding about No-Claims Discount you must know about. People are often confused whether their NCD applies to them or their vehicle.

Technically, your NCD applies to you. This means whether you switch to another insurer or buy another vehicle, your NCD remains with you. Nevertheless if you own a second car, the NCD for that vehicle will have to start from 0%.

In other words, your NCD can be transferred from one insurer to another and from one car to another. But it cannot be transferred from one person to another.

(NCD also cannot be transferred from one vehicle class to another. For example, you cannot transfer your Motorcycle’s 20% NCD to your Car or vice versa.)

If you are concerned about losing your NCD in case of an accident, you can buy an NCD protector.  Most insurers only allow you to buy this rider if your NCD is at 50%. With this, even if you make an insurance claim, your NCD will not drop.

However you have to bear in mind that your NCD protector cannot be transferred from one insurer to another. This means if you want to retain your NCD at 50% after an accident, you have to renew with your existing insurer.

Finally, if you don’t own a car (or vehicle) for more than 12 months, you will lose your NCD. For example, if you sold off your car and went overseas, then bought a car again after more than 12 months, your NCD will start from 0% again.

If your car insurance renewal is near, you may find a great insurer by getting car insurance quotes from as many as 12 different car insurers. Simply take 2 minutes to fill up the form at www.motorinsurancesingapore.com and the best 3 quotes will be sent to you.

If you want to sign up for an NTUC car insurance policy, you must understand what is covered and what is not. This article highlights the main scope of coverage under a typical comprehensive car insurance plan like NTUC Drivo Classic.

First and foremost, your car, its accessories as well as parts are insured against loss or damage provided they are caused by accidental collision or overturning, fire, external explosion, self-ignition, lightning, burglary, housebreaking, theft or falling object, malicious act, strike, riot or civil commotion, flood, typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature.

This is pretty good, because you can claim for damage under almost any situation, including flood, a possible situation in Singapore from time to time.

Of course, NTUC Income also caps the maximum insurance payout to the prevailing Market Value of your vehicle at the time of loss or damage. This also means if your repair cost exceeds the market value of your car, NTUC will pay you your car’s market value instead.

If you are insured under NTUC’s Drivo Classic car insurance, you must go back to any of the appointed workshops for repair. Under NTUC’s Drivo Premium car insurance, you can go to any workshop you prefer for accident repairs.

Nevertheless if you can find a workshop that can fix your car at a cheaper rate, you can submit your proposal to NTUC Income for consideration and the insurer may allow you to go to this particular workshop you want instead of the authorised workshop.

In case your vehicle is damaged and requires towing, NTUC will pay up to $200 to help move your car from the accident scene to the nearest workshop. All you have to do is call their hotline or the workshop directly to arrange for a tow truck.

Finally, NTUC will replace any broken windscreen or window glass on your car. There is an excess associated to this benefit. To get your windscreen replaced, contact NTUC about your intention to replace your windscreen. Then drive down to any one of the appointed windscreen repairer approved by NTUC Income. The mechanics will then advise you on how long the replacement will need so you know when to collect your car later.

However please bear in mind that you have to bear the cost of replacing the solar film on your windscreen. Also, you have to notify NTUC Income prior to making any claims. Otherwise things can get complicated.

If you need additional features like Loss of Use benefit or want to go back to your authorized workshop for accident repairs, you must upgrade to the NTUC Drivo Premium or NTUC Drivo Premium Plus plan to enjoy these benefits.

Other than NTUC car insurance, Chartis car insurance and AXA car insurance are 2 reliable options you may use to insure your car with. To get quotes from these insurers as well as other recommended companies, please take one minute to fill up the form at www.motorinsurancesingapore.com